FEATURE NEWS
season crop. In turn, we benefit from
accurate, timely advice, invaluable for
our long-term planning. If farmers aren’t
receiving a fair price, there’s always
the possibility they’ll understandably
turn to a cash crop that takes less time
and effort,” John says.
“With any commodity, and coffee is
no exception, it pays to take a long-term
and local view of New York pricing. For
us, it means a focus on making sure we
have the right quality coffees at the right
price in stock. At a local level, day to day
the New York price has little impact if
we’ve bought and forecasted correctly.”
Roasters are also capable of
purchasing their coffee through direct
trade, with some making efforts to
increase transparency in their coffee
buying to support farmers. This has
included publishing the prices they
have paid for coffee, whether that be
free on board, direct to farmer, or to
the importer. While this can support
the credibility of the individual brand,
Fairtrade’s Molly says systemic change is
required across the industry to ensure the
benefits of fair prices and accountability
are felt by more coffee farmers.
“Direct trade can be very powerful
and is a good way to see what is
happening to coffee farmers on the
ground, but there is no verification
of claims, and anybody can say
anything,” she says.
Molly says Fairtrade exists to
address power imbalances in global
commodity trade structures. One way it
does this is by facilitating independent,
third-party auditing and transparency
throughout supply chains, providing
consumers the assurance of fairness
that has to be taken on faith in many
direct trade relationships.
Fairtrade also requires the first
buyer to pay farmers the Fairtrade
Minimum of US$1.40 per pound, withan additional Fairtrade Premium of 20
US cents per pound, which delivered
US$100 million to farmers in 2018.
A quarter of this premium is directly
reinvested in businesses and community
projects, including training, education,
and health care.
“It’s not as simple as roasters paying
higher prices to traders, or coffee
buyers handing over more money for
a flat white,” she says. “Because control
of the global industry is in the hands
of just a few major corporations, we
need everyone who cares about coffee
to demand transformational changes
throughout the supply chain.”THINKING LONG TERM
Veneziano Coffee Roasters and
Nomad Coffee Group believe in
forming longstanding partnerships with
producers. Their sustainable coffee
program includes developing long-term
relationships, paying premiums, ensuring
traceability of its coffees, and giving back
to the local communities.“Our agreements on price are not
based around the C [Market]. Instead,
they are based on the sustainable,
long-term viability of the businesses,”
Craig says. “This is achieved via
minimum volume commitments over
a number of years in advance. Our
arrangement enables the farmers to
continue running profitable businesses
and investing in their farms to achieve
our mutual current and future quality
commitments.”
Through Nomad Coffee Group’s
contract roasting arm, Black Bag
Roasters, Craig says the company is
also able to buy more coffee from its
producers than a typical specialty roaster.
“We’re able to go in and buy
specialty coffee from a producer for
Veneziano but can also purchase
larger volumes of their high-grade
commercial coffee for use in Black
Bag Roasters,” he says. “As we are
buying both specialty and high-grade
commercial coffees, we are able to
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h^GrigrigsgsgssFEATURE NEWS
season crop. In turn, we benefit from
accurate, timely advice, invaluable for
our long-term planning. If farmers aren’t
receiving a fair price, there’s always
the possibility they’ll understandably
turn to a cash crop that takes less time
and effort,” John says.
“With any commodity, and coffee is
no exception, it pays to take a long-term
and local view of New York pricing. For
us, it means a focus on making sure we
have the right quality coffees at the right
price in stock. At a local level, day to day
the New York price has little impact if
we’ve bought and forecasted correctly.”
Roasters are also capable of
purchasing their coffee through direct
trade, with some making efforts to
increase transparency in their coffee
buying to support farmers. This has
included publishing the prices they
have paid for coffee, whether that be
free on board, direct to farmer, or to
the importer. While this can support
the credibility of the individual brand,
Fairtrade’s Molly says systemic change is
required across the industry to ensure the
benefits of fair prices and accountability
are felt by more coffee farmers.
“Direct trade can be very powerful
and is a good way to see what is
happening to coffee farmers on the
ground, but there is no verification
of claims, and anybody can say
anything,” she says.
Molly says Fairtrade exists to
address power imbalances in global
commodity trade structures. One way it
does this is by facilitating independent,
third-party auditing and transparency
throughout supply chains, providing
consumers the assurance of fairness
that has to be taken on faith in many
direct trade relationships.
Fairtrade also requires the first
buyer to pay farmers the Fairtrade
Minimum of US$1.40 per pound, with
an additional Fairtrade Premium of 20
US cents per pound, which delivered
US$100 million to farmers in 2018.
A quarter of this premium is directly
reinvested in businesses and community
projects, including training, education,
and health care.
“It’s not as simple as roasters paying
higher prices to traders, or coffee
buyers handing over more money for
a flat white,” she says. “Because control
of the global industry is in the hands
of just a few major corporations, we
need everyone who cares about coffee
to demand transformational changes
throughout the supply chain.”THINKING LONG TERM
Veneziano Coffee Roasters and
Nomad Coffee Group believe in
forming longstanding partnerships with
producers. Their sustainable coffee
program includes developing long-term
relationships, paying premiums, ensuring
traceability of its coffees, and giving back
to the local communities.“Our agreements on price are not
based around the C [Market]. Instead,
they are based on the sustainable,
long-term viability of the businesses,”
Craig says. “This is achieved via
minimum volume commitments over
a number of years in advance. Our
arrangement enables the farmers to
continue running profitable businesses
and investing in their farms to achieve
our mutual current and future quality
commitments.”
Through Nomad Coffee Group’s
contract roasting arm, Black Bag
Roasters, Craig says the company is
also able to buy more coffee from its
producers than a typical specialty roaster.
“We’re able to go in and buy
specialty coffee from a producer for
Veneziano but can also purchase
larger volumes of their high-grade
commercial coffee for use in Black
Bag Roasters,” he says. “As we are
buying both specialty and high-grade
commercial coffees, we are able to
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